Wealth manager and Financial Planner Tavistock Investments has expanded on its counterclaims in its legal battle with Titan Wealth Services Limited and Titan Asset Management.
In a stock exchange note today, Tavistock said it wanted to update its shareholders on the expanded scope of its counterclaims.
In December the court allowed Tavistock to expand the scope of its counterclaims against Titan to include new causes of action in respect of Titan's Model Portfolio Service for breach of confidence, alleged misuse of trade secrets and copyright infringement.
Brian Raven, Tavistock's Chief Executive, said: "When we agreed our contract with Titan in 2021, it was offered the opportunity to acquire Tavistock's Model Portfolio Service ("MPS") but declined to do so. It is therefore particularly disappointing that we have now had to include these new causes of action in respect of Titan's MPS, the significance of which is perhaps best demonstrated by the substantial amount that Titan spent in its failed attempt to prevent these matters coming before the Court."
Tavistock shared previously that it had an interim award of £250,000 in its legal battle with Titan Wealth Services Limited and Titan Asset Management.
Titan was ordered to pay Tavistock an interim amount on account of costs of £250,000 within 28 days of the hearing.
In June, Tavistock applied to the court to expand the scope of its counterclaims against Titan to include new causes of action in respect of Titan's Model Portfolio Service for breach of confidence, alleged misuse of trade secrets and copyright infringement and to add Titan Wealth Holdings Limited as an additional party.
Titan opposed the application and itself applied to strike out and/or for summary judgment in relation to parts of Tavistock's counterclaims.
The legal action marks a long running spat between the two companies which were once partners.
In June 2021, Tavistock announced its entry into a 10-year strategic partnership with Titan Wealth Services Limited. As a part of the arrangements Titan acquired Tavistock's asset management business and range of risk rated UCITS sub-funds, branded Acumen.
According to claims by Tavistock, less than a year into the partnership it uncovered “multiple breaches” by Titan of the strategic partnership agreement and earnout arrangements.
In July Tavistock terminated its 10-year strategic investment partnership with Titan Wealth, blaming “unacceptable performance.”
Titan subsequently issued a counter statement accusing Tavistock of “serious wrongful conduct” in ending the deal under which Titan managed Tavistock funds.
Tavistock blames Titan’s management of the acquired business to a collapse in the performance of the Acumen funds.
A spokesman for Titan Wealth told Financial Planning Today: "We respect the court’s decision that, procedurally, the defendants have satisfied the low threshold required to introduce into their pleading the amendments Titan has been contesting. Titan nevertheless maintains that the defendants’ counterclaims are factually and legally flawed and are likely to fail at the trial, which remains listed to take place in the summer of 2027."